The Hill (6/21, Lane) reported that while “an unprecedented flood of federal support may have helped larger companies stay afloat,” many small businesses “continue to face severe economic pain, suggesting the recovery from the coronavirus-fueled recession will be slow and uneven.” While May saw more than 2 million people return to work, “many smaller firms — and the typically low-wage workers who depend on them — have fallen through the cracks despite federal programs intended to help them.” According to a new research paper from the National Bureau of Economic Research, “more than 3 million small business owners were forced to close shop between February and April... roughly 22 percent of all small businesses.”

Media coverage of the President’s executive order on immigration was largely unfavorable, with reports highlighting business opposition and casting Trump as using the coronavirus pandemic as an excuse to implement his agenda. Politico (6/22, McCaskill) indicates “the new order extends restrictions originally enacted in April due to the coronavirus pandemic and expands on the previous directive, which blocked most people from receiving a permanent residency visa – or green card.” The new order also “prohibits visas for most guest workers who come to the US for temporary or seasonal work, but exempts farm workers, among others.” The Washington Examiner (6/22, Giaritelli) estimates that “in all, the visas being suspended would prevent approximately 525,000 immigrants from entering the US through the end of 2020.”

The Hill (6/22, Samuels) reports “a senior administration official said that the visa restrictions would free up more than half a million jobs for workers already in the country.” However, adds The Hill, “many companies are laying off workers due to the pandemic, and economic experts have acknowledged some of those jobs may not return.”

CNBC (6/19, Palmer) reported that the concerns of business owners “worried they’ll see an uptick in lawsuits from sick workers and customers” as states begin to reopen has “caught the attention of Congress, as lawmakers weigh the possibility of passing another Covid-19 stimulus package.” Senate Majority Leader McConnell “said he would push to include liability protections for businesses” in new legislation, with “broad support from Republicans in Congress, who argue businesses need greater protection” from such lawsuits. However, Democrats including House Speaker Pelosi “have said they’d fight limits to litigation, arguing such proposals could restrict workers’ right to sue” and “shield bad businesses that aren’t doing enough to protect their employees.”

NFIB’s Small Business Optimism Index (6/9) improved by 4.5 points to 94.4 in May. While the NFIB Uncertainty Index increased seven points to 82, owners expressed optimism about business conditions in the future and that the recession will be short. NFIB Chief Economist Bill Dunkelberg was quoted saying, “As states begin to reopen, small businesses continue to navigate the economic landscape rocked by COVID-19 and new government policies. ... It’s still uncertain when consumers will feel comfortable returning to small businesses and begin spending again, but owners are taking the necessary precautions to reopen safely.”

Reuters (5/28, Cowan) reported that the House passed legislation “increasing the amount of time, to 24 weeks from the current eight-week deadline, for small businesses to use Paycheck Protection Program loans.”

Bloomberg (7/4, Kary) reported a new survey it conducted with Morning Consult of 2,200 “US adults” (6/26-6/28) “shows how Covid-19 has dramatically changed behavior in the world’s biggest economy, potentially for the long haul.” Bloomberg cautioned the survey’s finding “flashes warning signs for the recovery, showing waning interest in public events and material things, like appliances and clothes, and a new austerity” that “foreshadows an era of fear and frugality that could push a full economic rebound...out of reach.” Bloomberg added the data “raises doubts about how much rising consumer confidence will translate into spending, on which the economy heavily relies.”

The New York Times (6/30, Rappeport, Smialek) reported that in appearances before the House Financial Services Committee on June 30, Treasury Secretary Mnuchin and Federal Reserve Chair Jerome Powell “presented a mixed picture of the U.S. economy...as lawmakers prepare for negotiations over another round of stimulus.” The Times said Mnuchin “offered a more optimistic forecast of the economy, saying he expects a rebound in the second half of the year,” while Powell “acknowledged the recovery has begun sooner than expected but shared a less sanguine forecast amid ongoing uncertainty about the virus.” Mnuchin was quoted as saying, “We are in a strong position to recover because the Trump Administration worked with Congress on a bipartisan basis to pass legislation and provide liquidity to workers and markets in record time.”

According to the New York Times (7/2, Tankersley, Cochrane), “There is a growing recognition across party lines that Congress will need to spend more money, and soon, to continue to prop up the American economy during the coronavirus recession,” but “there is little consensus on what that next aid package will look like and how quickly it will arrive before the end of summer.” The Times added that “there is a sense among Republicans and Democrats that the next bill will spend far less to help people and businesses than the nearly $3 trillion that Congress approved in March in a series of rapid-fire bills.”

Reuters (7/2, Mutikani) reported the Labor Department last Thursday announced the US economy added 4.8 million jobs in June, creating them “at a record clip...as more restaurants and bars resumed operations.” Unemployment fell to 11.1% in June from 13.3% the month before. Fed Chair Jerome Powell applauded the start of the recovery but cautioned that the future is still highly uncertain.

The Wall Street Journal (7/1, Subscription Publication) reported the rapid economic rebound seen from mid-April through mid-June appears to have stalled out in the past two weeks. The development may be the result of a reversal in consumer spending in states where coronavirus cases have risen, a weakening of demand that had been sparked by stimulus checks, or a pause in business activity after the first phase of low-risk workplaces were allowed to reopen.

PYMNTS (7/3) reported Wells Fargo Executive Vice President and Merchant Services head Colleen Taylor small- and medium-sized businesses (SMBs) have been significantly impacted by the pandemic, leaving most scrambling to digital channels to at least partially make up for the lost revenue. Ultimately, merchants’ digital enhancements are likely to stick post-pandemic, meaning businesses could look different than before the shutdown.

American Banker (6/22, Prior, Subscription Publication) reported, “Frustrated with the bottleneck for assistance, more small-business owners are considering switching their banks, according to Greenwich Associates, which provides data to the financial services industry.” And if the forgiveness process “proves as difficult as applying for the loans in the first place,” more are expected to leave. Greenwich Managing Director Chris McDonnell said the churn rate of small-business accounts is three times the norm, “and he attributes the spike primarily to customers’ soured feelings over their PPP experiences.”

The Wall Street Journal (6/21, Janofsky, Subscription Publication) reported on the devastation cyberattacks can inflict on small businesses, noting they tend to be the least prepared.

Business Insider India (6/4) interviewed Mastercard VP of marketing for South Asia Manasi Narasimhan about “how the brand has been communicating with its target audience and letting them know about the benefits of contactless payments.” The piece said that, “with an increase in overall digital payments, contactless payments are also seeing a surge and Mastercard has been working on educating consumers about the benefits and importance of contactless payments.”

SmartCompany (AUS) (6/4) reported Australian businesses are “ditching cash in droves as the COVID-19 pandemic heightens fears about germ-ridden notes, but SMEs [small to mid-size enterprises] are getting the short end of the stick as multinational payments giants clip the ticket.” While “most merchants have been sold on the benefits of cash-free trading by now,” the shift to “cash-free living also carries some sobering realities, not least of which are higher merchant fees, set up costs and complicated contracts.”

The Hill (7/1, Elis) reported states including Illinois, Nevada, and Oregon, along with a number of major cities, are enacting higher minimum wages effective July 1. Those opposed to the hikes hold that increases augment labor costs, and in turn, unemployment.

The AP (6/18, Rugaber) reported that “U.S. employers are still shedding jobs at a heavy rate, a trend that points to a slow and prolonged recovery from the recession.” The AP added, “the number of laid-off workers seeking unemployment benefits barely fell last week to 1.5 million, the government said Thursday,” which “was down from a peak of nearly 7 million in March, and...marked an 11th straight weekly drop.” However, “the number is still more than twice the record high that existed before the pandemic,” and “the total number of people receiving jobless aid remains a lofty 20.5 million.” The New York Times (6/18, Casselman, Hsu) said, “not all of the unemployment claims reported on Thursday necessarily reflect new layoffs,” as “some states are working through backlogs of claims filed earlier in the crisis,” and “in other cases, people filing under multiple programs may be double-counted.”

CQ Roll Call (6/4, Lerman) reported, “Five out of six workers would receive more in expanded unemployment benefits than they would earn on the job if Congress extends those benefits through January, the Congressional Budget Office said in a report Thursday.” That would lead to higher unemployment “both in the second half of this year and next year, according to the CBO, than if lawmakers let the added $600 weekly benefit expire July 31 as scheduled.”

Bloomberg Law (6/8, Hansard, Subscription Publication) reported many small business owners across the US are starting to sign “up for a program, new as of Jan. 1, that lets employers give their workers cash to buy coverage on an Affordable Care Act exchange.” The uptick in the Trump Administration program “could lead, eventually, to many companies getting out of the business of operating their own health-care plans altogether, according to health-care administrators and policy analysts.”

The AP (6/5, Rugaber) reported that the Labor Department revealed Friday morning that unemployment in the U.S. “dropped unexpectedly” last month to 13.3 percent “as reopened businesses began recalling millions of workers faster than economists had predicted, triggering a big rally Friday on Wall Street and giving President Donald Trump something to boast about.” However, the AP described the jobless rate as “still on par with what the nation witnessed during the Great Depression. And for the second straight month, the Labor Department acknowledged making errors in counting the unemployed during the coronavirus outbreak, saying the real figure is worse than the numbers indicate.” Nevertheless, the AP reported that “after weeks of dire predictions by economists that unemployment in May could hit 20% or more, the news that the economy added a surprising 2.5 million jobs last month is evidence that the employment collapse most likely bottomed out in April, when the rate reached 14.7%.”